DOWNING Street insisted Gordon Brown would not let Britain’s automotive industry die, as carmakers prepared for a summit with Business Secretary Lord Mandelson.

Jaguar Land Rover Chief Executive David Smith is expected to join a delegation of industry representatives meeting in Westminster, to hear whether the Government has finally come to a decision on whether to offer financial support.

Ministers have repeatedly hinted they are ready to help firms such as Jaguar Land Rover deal with the effects of the economic downturn and the near-collapse of the banking system.

And the Prime Minister’s spokesman confirmed that the automotive sector would not be allowed to vanish, saying: “The Government does believe that the car industry is a sector with a strong future and we are determined to ensure that the car sector remains a permanent and integral part of our manufacturing base.”

But there is still no agreement over a package of measures to help the industry, despite speculation that an announcement is imminent. Jaguar Land Rover has been asking for loans or loan guarantees, giving it access to credit while the banks refuse to lend.

It insists this not a bail-out, but is an urgently-needed substitute for money it would borrow when the financial markets were operating properly.

The Government is particularly keen to help Jaguar Land Rover because it has invested in research and development in the UK, with facilities at Whitley, in Coventry, and Gaydon, in Warwickshire.

But Treasury officials combing the firms books have found it difficult to untangle the business’ complicated financial relationship with its parent company, Indian firm Tata Group. Ministers are reluctant to commit taxpayers’ cash even for loans unless they are convinced the carmaker and its owner have done everything they can themselves.

And they are also determined to ensure billionaire Ratan Tata, chair of the Tata Group, contributes what he can to supporting the business.

There are also reports that Ministers are reluctant to accept calls to make credit available to car finance houses, which offer loans to motorist, as these sell foreign-built as well as British cars.